FANNIE MAE®
Small Loan Program
Arbor’s Small Loan product streamlines the entire loan process for multifamily acquisition and refinancing loans ranging from $750,000 to $6 million. Program benefits include reduced documentation requirements, streamlined report formats, and flexible legal/closing requirements.
| Loan Amount | $750,000 minimum Up to $6M nationwide |
| Loan Term | 5 to 30 years |
| Amortization | Up to 30 years |
| Minimum DSCR | 1.25x |
| Maximum LTV | Up to 80% |
| Rate Structure | Fixed- and adjustable rate options available, Hybrid ARM |
| Adjustable Rate | Available. Priced off the one-month or three-month SOFR. Convertible and nonconvertible options available |
| Eligible Properties | Multifamily, minimum five units |
| Eligible Borrower | Individuals, co-tenants and non-single asset entities acceptable. Must be U.S. citizens. No Entity Key Principals are permitted |
| Occupancy Requirements | 90% physical occupancy |
| Tax & Insurance Escrows | Typically required for higher leverage transactions |
| Replacement Reserves | Underwritten at a minimum $250 per unit per annum |
| Commercial Space | Maximum 35% of net rentable area and maximum 20% of effective gross income |
| Recourse | Non-recourse available in certain markets |
| Required Reports | Appraisal, Reduced Physical Needs Assessment and Environmental Screen |
| Prepayment | Flexible prepayment options available, including yield maintenance and declining prepayment premium |
| Supplemental Loans Pricing | Eligible for secondary financing after 12 months; Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV |
| Rate Lock | Standard 30- to 180-day rate lock period. Extended rate lock options available |
| Application Deposit | $10,000. Covers estimated processing and legal fees |
| Processing Fee | Not allowed without written approval |
| Origination Fee | Minimum 1%. Par pricing available. |
| Good Faith Deposit | 1% of loan amount for loans $6M and under |
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